KANSAINER - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

🎨 Kansai Nerolac Paints Ltd (KANSAINER) Swing Trade Analysis

KANSAINER is currently in a technical downtrend with weak momentum indicators and declining quarterly profits. While the fundamentals are stable and valuation is reasonable, the stock lacks short-term bullish triggers, making it a moderate candidate for swing trading.

✅ Positives

Valuation

P/E: 33.1 vs industry average of 45.4 — relatively undervalued

PEG Ratio: 1.56 — fair growth-adjusted valuation

Book Value: ₹79.4 vs CMP ₹242 — trading at ~3x book

Fundamentals

ROCE: 13.0% and ROE: 9.85% — decent efficiency

EPS: ₹14.1 — consistent earnings

Debt-to-equity: 0.05 — virtually debt-free

Dividend Yield: 1.03% — modest income support

Institutional Sentiment

FII & DII holding ↑ 0.10% — mild accumulation

⚠️ Concerns

Technical Indicators

RSI: 40.3 — weak momentum, near oversold

MACD: -1.24 — bearish crossover

Price below both 50 DMA (₹248) and 200 DMA (₹256) — confirms downtrend

Volume

Current: 1.05L vs Avg: 1.61L — declining interest

Profitability

PAT Qtr: ₹102 Cr vs ₹168 Cr — sharp decline

Qtr Profit Var: -10.4% — negative growth

52-Week Index: 23.2% — underperforming peers

🎯 Optimal Entry Price

Entry Zone: ₹228–₹235

Near support zone and previous consolidation levels

Wait for RSI to cross 45 and MACD to flatten

Confirm with bullish candlestick pattern (e.g., hammer, bullish engulfing)

🚪 Exit Strategy (If Already Holding)

Short-Term Target: ₹255–₹262

Resistance near 200 DMA and previous swing highs

Stop Loss: ₹220

Below recent support and 52-week low

📌 Summary

KANSAINER is a fundamentally sound but technically weak stock. It may offer a swing opportunity if it stabilizes near ₹230 and shows signs of reversal. If already holding, consider exiting near ₹260 or trail stop loss to ₹220.

For chart-based confirmation, you can explore KANSAINER’s technical chart on TradingView

1

or use JustTicks for multi-timeframe analysis

2

.

1

in.tradingview.com

2

justticks.in

Edit in a page